Financial Management MCQ Questions and Solutions with Explanations

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Financial Management MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Financial Management MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-2 section-12

Each section contains 100 MCQs on Financial Management .

Financial Leverage measures relationship between:

A) EBIT and PBT B) EBIT and EPS C) Sales and PBT D) Sales and EPS

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

In case of divisible projects, which of the following can be used to attain maximum NPV?

A) Feasibility Set Approach B) Internal Rate of Return C) Profitability Index Approach D) Any of the above

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Inventory Turnover measures the relationship of inventory with:

A) Average Sales B) Cost of Goods Sold C) Total Purchases D) Total Assets

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as:

A) Average Return on Investment B) Weighted Average Cost of Capital C) Net Profit Ratio D) Average Cost of borrowing

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Capital Budgeting deals with:

A) Long-term Decisions B) Short-term Decisions C) Both A and B D) Neither A nor B

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Which element of the basic NPV equation is adjusted by the RADR?

A) Denominator B) Numerator C) Both A and B D) None of these

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Which of the following statements is correct?

A) A Higher Receivable Turnover is not desirable B) Interest Coverage Ratio depends upon Tax Rate C) Increase in Net Profit Ratio means increase in Sales D) Lower Debt-Equity Ratio means lower Financial Risk

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

The Real Cashflows must be discounted to get the present value at a rate equal to:

A) Money Discount Rate B) Inflation Rate C) Real Discount Rate D) Risk free rate of interest

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

If a firm has no debt, which one is correct?

A) OL is one B) FL is one C) OL is zero D) FL is zero

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Financial decision involves:

A) Investment, financing and dividend decision B) Investment, financing and sales decision C) Financing, dividend and cash decision D) None of these

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

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Financial Management MCQ Questions and Solutions with Explanations | Commerce